Unibail-Rodamco-Westfield Sells 25% Stake in Prague's Centrum Černý Most for €553M

January 10, 2025 04:09 PM AEDT | By Team Kalkine Media

Unibail-Rodamco-Westfield Sells 25% Stake in Prague's Centrum Černý Most for €553M — Image source: Shutterstock

Details of the Transaction

The deal paves the way for a long-term joint venture between URW and investment firms Upvest and RSJ Investments, who now hold the option to acquire an additional 24% stake within two years, based on the appraisal value at that time.

URW will retain management of the 85,000-square-metre shopping centre, which is currently undergoing upgrades. The sale also aligns with the company’s broader strategy to reduce debt and focus on sustainable financing.

Green Mortgage Loan

The transaction includes a green mortgage loan of up to €268 million, marking the largest syndicated commercial real estate loan in the Czech Republic since 2023. The loan will fund the ongoing 9,000-square-metre extension project, which is set to be completed by 2026.

This expansion will bring new retail, dining, and leisure facilities, further solidifying Centrum Černý Most’s status as a top-performing shopping destination in the region.

Centrum Černý Most’s Market Position

Centrum Černý Most is described as "one of the strongest and best-performing retail destinations in Prague", attracting significant foot traffic and a loyal customer base. The planned upgrades will bolster its competitive position, ensuring it remains a key player in Prague’s retail landscape.

Unibail-Rodamco-Westfield’s Performance

URW shares are currently trading at $6.20, reflecting steady investor confidence. The company’s strategic asset sales and joint venture agreements signal a focused effort to maintain financial health and drive sustainable growth.

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